Snapple 2012 Annual Report Download - page 100

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
82
The pension assets of DPS' U.S. plans represent approximately 93% of the total pension plan assets as of December 31, 2012.
The asset allocation for the U.S. defined benefit pension plans for December 31, 2012 and 2011 are as follows:
Target Actual
Asset Category 2013 2012 2011
Equity securities 25% 25% 25%
Fixed income 75% 75% 75%
Total 100% 100% 100%
Investment Policy and Strategy
DPS has established formal investment policies for the assets associated with defined benefit plans. The Company's investment
policy and strategy are mandated by the Company's Investment Committee. The overriding investment objective is to provide for
the availability of funds for pension obligations as they become due, to maintain an overall level of financial asset adequacy and
to maximize long-term investment return consistent with a reasonable level of risk. DPS' pension plan investment strategy includes
the use of actively-managed securities. The Investment Committee periodically reviews investment performance both by investment
manager and asset class, as well as overall market conditions with consideration of the long-term investment objectives. None of
the plan assets are invested directly in equity or debt instruments issued by DPS. It is possible that insignificant indirect investments
exist through its equity holdings. The equity and fixed income investments under DPS sponsored pension plan assets are currently
well diversified across all areas of the equity market and consist of both corporate and U.S. government bonds.
The Plans' asset allocation policy is reviewed at least annually. Factors considered when determining the appropriate asset
allocation include changes in plan liabilities, an evaluation of market conditions, tolerance for risk and cash requirements for
benefit payments. The investment policy contains allowable ranges in asset mix as outlined in the table below:
Asset Category Target Range
U.S. equity securities 15% - 25%
International equity securities 5% - 10%
U.S. fixed income 65% - 85%